Swallow shows a cautious upturn
01 January 2000
SWALLOW Hotels, owned by Vaux, is gradually recovering from the recession according to its financial performance in the six months to the middle of March.
Operating profit at Swallow was 13.2% ahead of the same period in 1993. Turnover and occupancy grew by 3% but room rates were little changed.
Since March, Vaux has sold a £7m student hostel at Newcastle University. The proceeds will be used to fund £4m worth of hotel and pub developments.
A bright spot for Swallow was the 10% increase in weekend "breakaway" sales. Since the end of the trading period weekend breaks have grown by a further 27%,although recent tax increases may affect future leisure spending.
